La Tondeña Distillers, Inc.

September 16, 1998 PSE CIRCULAR FOR BROKERS NO. 2153-98 SUBJECT : La Tondea Distillers, Inc . La Tondea Distillers, Inc. ("LTD") clarified to the Exchange a news article published in the September 14, 1998 issue of the Manila Bulletin which reported of the postponement of the flotation of its P2 billion worth of convertible preferred shares intended to reduce its P6.21 billion debt. LTD, in its letter to the Exchange dated September 15, 1998 explained that: "1. The source of the article did not come from La Tondea Distillers, Inc. . . . 2. Our proposed issuance of up to P2 billion worth of convertible preferred shares has been deferred due to the present weak market of shares. 3. We have signed an Energy Services Agreement with a local subsidiary of Rolls Royce Power Ventures, Inc. last September 7, 1998. 4. Negotiations are still ongoing for the sale and distribution of CO 2 . 5. When we deem it necessary, we negotiate for forward contracts for our molasses requirements as a hedge against rising prices of this commodity." For your information. prLL (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group